Development = progress of a country in terms of economic growth, use of technology and human welfare ; the
aim is to improve people’s quality of life
● Is shown by the average wealth of the citizens using gross national income, GNI
○ Total value of all goods/services produced by population + income earned from investments that’s
its people/businesses have made overseas = GNI
● To compare level of economic development for different countries –
1. Divide GNI by population of country to produce a per capita (per person) figure
2. Convert into US dollars ($) for easy comparison
3. Each figure can be adjusted for each country based on income
○ eg/ in LICs, goods cost less → wages go further than might be expected in an HIC
● GNI per capita hides the divisions of wealth
○ A few very very wealthy individuals boost average GNI
○ Makes “average” person look wealthy as well – contrast to reality
● Money isn’t the only thing influencing economic development
● Quality of life must also be taken into account
○ eg/ literacy rates, life expectancy, number of people per doctor and water supply etc.
● Level of economic development = refers to how wealthy a nation is , concerned with factors such as;
○ Average income
○ Number of people living below poverty line
● Quality of life = refers to general level of wellbeing of individuals/societies
○ Economic
■ Income, job security, standard of living (eg/ housing)
○ Social
■ Family/friend, health, education
○ Physical
■ Diet/nutrition, water supply, climate, environmental quality/hazards
○ Psychological
■ Happiness, security, freedom
The three main global groups:
→ Countries are classified into 3 main groups according to their level of economic development based on GNI
● LICs Low income countries
○ Roughly 30 countries in the world
○ GNI = $1045 per capita
○ Primary employment sector – agriculture and farming
■ eg/ Madagascar
■ eg/ Republic of Congo
■ eg/ Mongolia
● NEEs Newly emerging economies
○ Roughly 80 countries in the world
○ GNI = $1046 – $12735 per capita
○ Primary and secondary employment sectors – factory employment
■ eg/ BRICs → Brazil, Russia, India, China and South Africa
■ eg/ MINT → Mexico, Indonesia, Nigeria and Turkey
● HICs High income economies
○ Roughly 80 countries in the world
○ Tertiary and quaternary employment sectors – office work, teaching, technology
■ Post-industrial economy
○ GNI = $12736 per capita
■ eg/ America
World map of development:
● High income countries:
○ Northern hemisphere
■ Exception of Australia and New Zealand
○ Western Europe
○ North America
○ Middle East
■ eg/ Saudi Arabia, Qatar and UAE
○ East Asia
■ eg/ Japan, South Korea and Singapore
● Newly emerging economies:
○ South American countries are NEEs
○ Eastern European countries (some EU members) are mainly NEEs
● Low income countries:
○ African countries
○ Asia has more NEEs than LICs
○ Africa has more LICs than NEEs
● Global pattern of economic development has changed
○ 1980s → clear divide between rich “global north” and
poor “global south”
○ Division made clear by Brandt Line
○ Has changed a lot when looking at the modern world
■ China now world’s largest economy
■ Several of world’s HICs lie south of Brandt line
■ GNI of some EU members lower than that of Brazil
and Malaysia
■ Millionaires and billionaires found in every
continent
